Lack of trade finance slowing global growth: ADB

Tokyo

INCREASINGLY cautious banks are shying away from financing trade in emerging markets, a trend which is contributing to the sharp slowdown in the growth of world trade, which is dragging down global economic growth, the Asian Development Bank (ADB) has said.

In a report published on Tuesday, it noted that the global availability of trade finance improved last year, but gaps are becoming more pronounced in emerging economies, including in Asia, driven by banks' decision to move away from high-risk markets.